Seifsa ‘encouraged’ by sector’s January performance
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) says it is “very encouraged” by the strong performance of the metals and engineering industry in the first month of the year, following the publication of production data by Statistics South Africa on Thursday, which demonstrated a 4.5% year-on-year growth in the sector in January.
Seifsa chief economist Henk Langenhoven described the latest data, which also found that seasonally adjusted production in January was 4.7% higher than that in December, as “encouraging”.
“However, the production data is notorious for its volatility, so caution is advised,” he noted, adding that the best-performing industries were the basic ferrous, nonferrous, electrical machinery and equipment, as well as other fabricated products sectors.
In contrast, structural metal products and general machinery experienced declines in their production.
“If January is an indication of future performance, 2014 could be a better year overall for the industry,” he held.
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